Introduction

The Department of Space recently received an 18% budget increase for the fiscal year 2024-25, highlighting India’s focus on developing its space technologies.

Evolution of India’s Space Economy

• India’s space journey began with the launch of its first satellite, Aryabhata, in 1975.
• Since then, the Indian Space Research Organisation (ISRO) has made significant strides, from the Chandrayaan missions to Mars Orbiter Mission (Mangalyaan), contributing immensely to scientific research and practical applications.

Current Valuation and Future Projections

• Currently, India’s space economy is valued at approximately ₹6,700 crore (around $8.4 billion), representing a modest 2% share of the global space economy.
• The Indian National Space Promotion and Authorization Centre (IN-SPACe) projects this to grow to ₹35,200 crore ($44 billion) by 2033, aiming for an 8% global market share and reaching 15% by 2047.

Budgetary Allocation

• In the 2024-25 Union Budget, the Central government allocated ₹13,042.75 crore to the space sector.
• An additional ₹1,000 crore ($134 million) has been infused as a Venture Capital Fund (VCF), supporting India’s ambition to quintuple its space economy over the next decade.
• This boost aims to foster innovation, enhance private sector participation, and improve global competitiveness.

Decadal Vision and Strategy

IN-SPACe, an autonomous agency under the Department of Space, has outlined its decadal vision focusing on:

• Demand Generation: Increasing demand for space services and applications.
• Local Manufacturing: Promoting indigenous production of satellites, launch vehicles, and other space hardware.
• Private Sector Participation: ISRO is encouraging private sector involvement to advance a self-reliant India (Aatmnirbhar Bharat).
• Infrastructure Development: Building necessary infrastructure for space activities.
• Regulatory Framework: Establishing clear guidelines for non-governmental entities (NGEs) in the space sector.

Key Segments of the Space Ecosystem

1. Space-for-Earth: Applications like weather forecasting, communication, and remote sensing.
2. Access-to-Space: Enabling satellite launches and transportation.
3. Space-for-Space: Focusing on scientific research, exploration, and interplanetary missions.
4. Strategic and Enabling Capabilities: IN-SPACe aims to achieve its vision through capabilities like Earth Observation (EO) platforms, communication platforms, navigation platforms, R&D, talent pool creation, access to finance, international collaboration, and policy regulation.

Challenges

• Global Competition: Indian companies must offer competitive services and reliable technology to capture the global market.
• Private Sector Involvement: More substantial investment and commitment are needed.
• Technology Development: Innovation in reusable launch vehicles, miniaturized satellites, and advanced propulsion systems is crucial.
• Regulatory Framework: Clear and transparent regulations are needed.
• Infrastructure: Developing and maintaining infrastructure requires significant capital.
• Talent Development: Attracting and retaining talent is essential.
• Risk Management: Robust risk assessment and insurance mechanisms are necessary.
• Collaboration with ISRO: Balancing private contributions with ISRO’s expertise is key.

Major Reforms

• Indian Space Policy 2023: Defines roles for ISRO, New Space India Limited (NSIL), and private entities, encouraging participation from research, academia, startups, and industry.
• Strategic Proposals by SIA: The Space Industry Association – India (SIA-India) has proposed increasing India’s space budget to support expanding programs, foster private sector involvement, and drive technological advancements.
• Tax Incentives: More initiatives for tax exemptions and benefits for space sector companies are needed.
• FDI in Space Sector: New rules allow 100% FDI in manufacturing and operating satellites, with 74% through the automatic route.

Space Start-Ups

• From one startup in 2014, India now has 189 space startups in 2023, with investments reaching $124.7 million.
• IN-SPACe, established in 2020, promotes, authorizes, and supervises space activities by NGEs, marking a significant milestone.

International Collaboration and Diplomacy

• International collaboration plays a pivotal role in India’s space strategy.
• Partnerships with global space agencies and organizations facilitate the exchange of knowledge, technology, and resources.
• These collaborations enhance India’s capabilities and ensure its participation in international space missions.
• Diplomatic efforts in space policy also aim to establish India as a responsible and influential player in global space governance, promoting the peaceful use of outer space.

Economic Impact and Job Creation

• The expansion of the space economy has significant economic implications.
• Increased investment in space-related activities stimulates economic growth and generates employment opportunities across various sectors, including manufacturing, IT, and services.
• The establishment of new spaceports, research facilities, and manufacturing units can create thousands of jobs, contributing to regional development and economic diversification.

Sustainability and Environmental Considerations

• As India advances its space ambitions, sustainability and environmental considerations are becoming increasingly important.
• Efforts are being made to minimize the environmental impact of space launches and operations.
• The development of green propulsion technologies, efficient resource utilization, and sustainable practices in satellite manufacturing and disposal are critical areas of focus.
• Balancing technological advancement with environmental responsibility is essential for the long-term viability of the space sector.

Future Prospects: The Road Ahead

Looking ahead, the roadmap for India’s space economy is filled with exciting prospects. Upcoming missions, including the Chandrayaan-3 and Gaganyaan, India’s first manned space mission, highlight the nation’s commitment to expanding its space capabilities. These missions, alongside ambitious projects like the development of a space station, underscore India’s resolve to maintain its trajectory of growth and innovation in the space domain.

Conclusion

India’s space journey has been extraordinary, with achievements in satellite technology and interplanetary missions. The future looks promising with increasing private participation and a focus on innovation, positioning India as a key player in the global space economy.